Kimberly-Clark Earnings Cheat Sheet: Profits Hurt By Rising Costs, Shares Drop

S&P 500 (NYSE:SPY) component Kimberly-Clark Corporation (NYSE:KMB) reported a lower net income in first quarter, missing analysts’ estimates. Kimberly-Clark Corporation manufactures and markets a range of mostly paper-based consumer products.

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Kimberly-Clark Earnings Cheat Sheet for the First Quarter

Results: Net income for the personal products company fell to $350 million (86 cents/share) vs. $384 million (92 cents/share) a year earlier. A decline of 8.9% from the year earlier quarter.

Revenue: Rose 4% to $5.03 billion YoY.

Actual vs. Wall St. Expectations: KMB fell short of the mean analyst estimate of $1.18/share. Estimates ranged from $1.10 per share to $1.22 per share.

Quoting Management: Chairman and Chief Executive Officer Thomas J. Falk said, “We continue to execute our Global Business Plan strategies in a difficult environment. We grew organic sales in the first quarter in line with our full-year plan, as we continue to benefit from innovation and targeted growth initiatives. We are gaining market share in several businesses, and we are launching a number of product innovations to further improve our brands. We also continue to deliver significant ongoing cost savings and allocate capital in shareholder friendly ways, with first quarter share repurchases and dividend payments totaling more than $1.1 billion.”

Key Stats: Net income has dropped 2.1% year over year on average across the last five quarters. Performance was hurt by a 19.4% decline in the third quarter of the last fiscal year from the year earlier quarter.

Over the last five quarters, revenue has increased 3.5% on average year over year. The biggest increase came in the first quarter of the last fiscal year, when revenue rose 7.6% from the year earlier quarter.

Competitors to Watch: The Procter & Gamble Co. (NYSE:PG), Cardinal Health, Inc. (NYSE:CAH), Church & Dwight (NYSE:CHD), Colgate-Palmolive (NYSE:CL), Clorox (NYSE:CLX), Johnson & Johnson (NYSE:JNJ), Zep (NYSE:ZEP) and Avon Products (NYSE:AVP).

Today’s Performance: Shares of KMB are trading at $64.82 as of April 25, 2011 at 8:07 AM ET, down over 1% from the previous close.


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